The Negative Effect of Low Rates

Wall Street Journal
The Negative Effect of Low Rates

The Federal Reserve's Interest Rate Forecasts

In the Federal Reserve's effort to provide more transparent disclosure on their policy direction they've begun to publish the FOMC's assessments following each of their meetings. This meeting's release showed two key policy categories: 1) Appropriate timing of policy firming and 2) Appropriate pace of policy firming.

In the February 1st release the majority of the participants felt the appropriate timing for policy firming to be in 2014. Of the 17 FOMC members, the majority felt the federal funds target rate would remain at 0.25% from 2012 - 2014 and reach 4.0% in the longer run.

Wall Street Journal
The Federal Reserve's rate forecast projections.

Europe Hit by Downgrades

Nine of the seventeen euro-zone countries had their debt rating downgraded last week. Germany remains the mainstay in the euro-zone keeping its triple-A rating.

Wall Street Journal
Europe Hit by Downgrades

Fed to Publish Rate Forecasts

In January, the Federal Reserve will begin releasing interest rate plans and forecasts. These forecasts are expected to be revealed after the Fed's January 24 - 25 meetings.

Wall Street Journal
Fed to Publish Rate Forecasts
Economists React: Fed Moves to 'Aleviate Uncertainty'

Dow Ends Year of Tumult up 6%

Wall Street Journal
Dow Ends Year of Tumult up 6%

U.S. Stocks Hit 5-Month High

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Stocks Hit 5-Month High in Year-End Rebound

European Disunion

Wall Street Journal
Ties That Bound Europe Now Fraying